Arsenal profits up £9m

Arsenal have reported an increase of almost £9million in pre-tax profit. The financial results of the club's parent company, which were released this morning, showed that profit had risen from £10.6million to £19.3million in the year ended May 31, 2005. However, group operating profits before player trading and exceptional items were reduced to £32.6million from the 2004 level of £36.2million.

Arsenal's football business maintained turnover at £115.1million, the same as in 2004, with a fall in broadcasting revenues compensated by increases in other categories of income. While the group's overall net debt increased to £153.3million - from £141.3million in 2004 - a successful finance strategy means cash reserves available to Arsenal Football Club increase to £63.1million, up from £17.6million last year.

The north London club are scheduled to relocate to their new Emirates Stadium for the start of the 2006/2007 season. While expenditure on the project over the year was in excess of £94million, this was financed by long-term fixed-rate bank debt, and opportunities for re-financing the structure of the debt at a lower interest rate are being examined.

Commenting on the financial results, Arsenal Holdings plc non-executive chairman Peter Hill-Wood said: "2004/05 has been another successful year, both on and off the pitch, for the Arsenal Group. On the field, Arsenal has won the FA Cup for a 10th time and the club has again achieved automatic qualification for the Champions League. Off the field, the group signed a number of significant commercial contracts - with Emirates and Delaware North - and has delivered another strong set of financial results. Most importantly, Arsenal's new home from the start of the 2006/07 season - Emirates Stadium - remains on course for its scheduled completion date."

Hill-Wood added: "The 2005/06 season will be a particularly poignant and special one as it will be the club's last at Highbury. "The group has achieved so much, so quickly over the last few years and it is remarkable to reflect on the fact that we now have perhaps less than 30 Arsenal matches to watch at Highbury before this great chapter in the club's history draws to a close."